New possibility for undertakings in difficulties since the end of 2019 to use INVEGA support
Starting this week, the undertakings that were in difficulties on 31 December 2019, which, however, proven to be no longer experiencing the adverse effects at the moment of submission of the application, will be able to correspondingly contact the national development promotion institution Investment and Business Guarantees (INVEGA) or financial intermediaries implementing the measures, and use the INVEGA aid allocated for mitigation of COVID-19 pandemic impact.
“Up until now, the undertakings experiencing difficulties on 31 December 2019 were unable to use our aid altogether,” said Kęstutis Motiejūnas, CEO at INVEGA. – “We saw positive developments in the companies within the period from the end of the year to the moment of submission of the application. For this reason, we addressed the European Commission for additional clarification on how to apply the being in difficulties criterion to the undertakings wishing to use the COVID-19 related state aid. The result was pleasing – it is possible to re-evaluate the financial status of the undertakings at the moment of submission of application for aid, making our support measures available to a wider range of companies.”
According to Motiejūnas, this possibility opened up after the European Commission (EC) adjusted its communication “Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak”. EC provided that state aid must be available to the undertakings, which, at the moment of submission of the application, are not facing difficulties, although at the end of the previous year were in such situation.
Depending on the measure the undertaking expects to use, and in order to re-evaluate the applications, the undertakings will have to present additional information to INVEGA or the respective financial intermediary. The company will be asked to present the interim financial statements for the past quarter or as of last day of the month preceding the application submission date, in order to declare that at the moment of submission of the application the undertaking is no longer experiencing difficulties. If during the period between 1 January 2020 and the date of submission of the application, the company had any structural property changes (such as, capital, share premiums, revaluation reserve, reserve), the undertaking will have to present additional documents substantiating these changes (accrued loss payments, increase in capital duty, assets valuation and/or other related documents).
Additional information to the application can be submitted in order to be able to use nearly all INVEGA support measures for businesses during COVID-19 outbreak: compensation of lease payments, loans for payable invoices (ASAP), loans to businesses most affected by COVID-19 and portfolio guarantees for loans under measure “Portfolio Guarantees for Loans 2”. Additional information can also be submitted by hauliers seeking compensation of interest under the loan and lease contracts intended for the acquisition of vehicles. The applications for compensation of other types of interests were previously not subject to the criterion of an undertaking in difficulties, therefore, such applications can be further submitted and examined in the standard procedure.
